[20011012]RS20393_多雇主养老金计划：第415节福利限制.pdf

Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS20393Updated October 12, 2001Multiemployer Pension Plans: The Section 415 Benefit LimitsCelinda FrancoSpecialist in Social LegislationDomestic Social Policy DivisionSummarySection 415(b) of the Internal Revenue Code sets limits on the maximum dollarbenefit that can be paid from a tax-qualified pension plan. It also sets a limit on thepercentage of a participants salary that can be replaced by pension benefits. In 2001,the maximum annual pension benefit that can be paid from a defined benefit pension planis the lesser of $140,000 or 100% of the average annual compensation over aparticipants highest 3 consecutive years. The dollar limit is actuarially reduced for earlyretirement (before the Social Security normal retirement age). These limits are designedto prevent tax abuse and to avoid overly generous pension benefits subsidized at taxpayerexpense. Multiemployer pension plans have been seeking relief from 415(b) limits,arguing that benefit formulas in these collectively bargained plans are not related tocompensation, and the 415 limits unfairly reduce the pensions o